Let’s Make A Deal…

Let’s Make A Deal… I mean, let’s make a deal to make a deal.  Deal? Just more jawboning from the US & China to drive investor sentiment higher.  The mid-October announcement of a Phase 1 US-China trade deal helped spark risk markets higher.  The announced deal has little substance in terms of details, size, or timing.  All the while the economic data prints continue to weaken.  Economic back drop is now being hit from both cyclical forces as well as secular forces as the era of globalization has ended. The S&P500 is showing resiliency by bouncing back above 3,000 level and now tagging the resistance line from early 2018. Daily and weekly cycles are both on bullish trends with the upside breakout.  Source: Tradingview.com The S&P 500 last daily cycle low bottomed on Oct 3, with the last weekly cycle bottomed on Jun 3.  The daily cycle low came just at the government began talking up the chances of a deal. TRI expects the next daily cycle low between early Nov and early Dec. TRI will need to see a daily swing high form, as the first piece of evidence of current cycles topping. No Fear, Just Greed Investor sentiment…

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